Property developer reports 28% NAV dip

REAL Estate Opportunities Ltd reported a 28% fall in net asset value (NAV) per share for 2008 from a year ago as revaluation of its portfolio fell in the Ireland and Britain, and warned of pressure on covenants.

“Indications are that valuations are likely to decline in 2009, placing additional pressure on covenant compliance. However, the company remains confident about its ability to renegotiate covenants with its banks if required,” chairman Ray Horney said in a statement.

The company kept a cautious outlook and said it would focus on managing costs and cash.